Landmark Immigration Consultants Ltd. IPO: Key Details

Landmark Immigration Consultants

• Landmark Immigration Consultants is coming out with an initial public offering (IPO) of 56,00,000 equity shares in a price band Rs 70-72 per equity share.
• The issue will open on January 16, 2025 and will close on January 20, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 7.00 times of its face value on the lower side and 7.20 times on the higher side.
• Book running lead manager to the issue is Shreni Shares.
• Compliance Officer for the issue is Charanchit Kaur.

Profile of the company

Landmark Immigration Consultants offers an integrated Global Consultancy Services which includes (i) Global Education Consultancy (GEC) services to students, aspiring to build career abroad majorly in Canada and (ii) Immigration Consultancy (IC) Services for Tourist/Business and application for Permanent Residency (PR). Within GEC, it assists Students in making smarter educational decisions and within IC, it assists customers in making visa application for tourist or business purpose and who are eligible to obtain a PR in that respective country. The company provides a one-stop solution to the students and customers predominantly from various parts of Punjab, Chandigarh and Vadodara. The company’s vision is to empower the aspiring students of India and fulfill the dreams of the citizens to position themselves successfully in the global landscape.

The company offers a comprehensive range of professional programs in global education consultancy which includes a) Education Consultancy b) Education Loan Guidance and Scholarships c) Admission application Formalities, d) Training for Language Proficiency Tests, e) Study/Schooling Visa etc., Also, it provides Admission support to its students right from the time when they enroll with it. Career support is embedded throughout its programs rather than at the end of a course. Its team helps its students’ hands on to identify and to create opportunities, provide guidance & support to develop their professional track record & develop an outreach strategy for them which can help them to take career benefits from newly developed skills.

The company also offers a range of services in Immigration Consultancy which includes a) Tourist/Business Visa Services b) Permanent Residency Services. It provides consultancy services to its customers right from the time when they provide their preferences to travel or to settle in a particular country. It provides them service which includes detailed consultancy on identifying the right time to travel, destination of travel, the type of documents which are involved in the visa process for tourist/business purpose and for permanent residency purpose.

Proceed is being used for:

• Capital expenditure to be incurred by the company for setting up new branches
• Advertisement expenses towards enhancing the awareness and visibility of its brand
• Pursuing inorganic growth initiatives through acquisitions
• General corporate purposes

Industry Overview

Education is a human right, a powerful driver of development, and one of the strongest instruments for reducing poverty and improving health, gender equality, peace, and stability. It delivers large, consistent returns in terms of income, and is the most important factor to ensure equity and inclusion. For individuals, education promotes employment, earnings, health, and poverty reduction. Globally, there is a 9% increase in hourly earnings for every extra year of schooling. Meanwhile, India has the largest population in the world in the age bracket of 5-24 years with 580 million people, presenting a huge opportunity in the education sector. India holds an important place in the global education industry. India has one of the largest networks of higher education institutions in the world. However, there is still a lot of potential for further development and improvement in the education system. With increasing awareness, private Indian players are collaborating with international brands to provide an international standard of education.

The education sector in India was estimated to be worth $117 billion in FY20 and is expected to reach $225 billion by FY25. India has over 250 million school-going students, more than any other country. India had 38.5 million students enrolled in higher education in 2019-20, with 19.6 million male and 18.9 million female students. According to UNESCO’s ‘State of the Education Report for India 2021’, the Pupil Teacher Ratio (PTR) at senior secondary schools was 47:1, as against 26:1 in the overall school system. The Number of colleges in India reached 49,385 in FY24 (as of September 13, 2023) and 43,796 in FY21, up from 42,343 in FY20. The number of universities in India reached 1,196 in FY24 (as of September 13, 2023), up from 760 in FY15. The online education market in India is expected to grow by $2.28 billion during 2021-2025, growing at a CAGR of almost 20%. The market grew by 19.02% in India in 2021.

Meanwhile, India being one the most popular travel destinations across the globe has resulted in the Indian tourism and hospitality industry emerging as one of the key drivers of growth among the services sector in India. The tourism industry in India has significant potential considering that Tourism is an important source of foreign exchange in India similar to many other countries. India is ranked 10th among 185 countries in terms of travel & tourism’s total contribution to GDP in 2019. According to WTTC, the contribution of India's travel and tourism sector to India's economy was worth Rs 15.9 trillion ($191.25 billion) in 2022. In 2021, the travel & tourism industry’s contribution to the GDP was $178 billion; this is expected to reach $512 billion by 2028. By 2029, it is expected to account for about 53 million jobs. In India, the industry’s direct contribution to the GDP is expected to record an annual growth rate of 7-9% between 2019 and 2030.

Pros and strengths

One Stop solution for visa consultancy services: The company offers personalized assistance, tailored specifically to the unique needs and circumstances of each client, ensuring a customized approach to visa applications. The company’s services extend beyond mere visa assistance. It provides comprehensive support from consultancy on identifying the right time to travel, destination of travel, the type of documents which are involved in the visa process for tourist/business purpose and for permanent residency purpose. It streamlines the visa application process, saving clients time and effort by handling paperwork, documentation, and other administrative tasks efficiently.

Certifications and appointments by reputed universities obtained by Promoter and Company: The company and one of the Promoter of the Company, Jasmeet Singh Bhatia is accredited with various Certifications over a period of last 13 years for global education Consultancy Services like USATC (US Agent Training Course) US Course Graduate and Certified Agent for USA, CCEA (Canada Course for Education Agents) Canada Course Graduate and Certified Agent in India, Certificate of Appointment by EduCo as an authorised representative for the recruitment of International Students into University of Nebraska-Lincoln, U.S.A, Niagara College Canada.

Dedicated team of counsellors: Dedicated team of Counsellors, each counselling in the visa services of specific countries. This counselling approach ensures that clients receive the highest standard of assistance tailored to the requirements of their chosen destination. It also boasts an education team that aids individuals across India in realizing their dream of studying abroad. Its team provides valuable guidance to help clients secure admission to their preferred courses at various universities. It has team of immigration consultants who are well-versed in guiding individuals through the intricacies of the migration process and guide them on the basis of customers’ preference the time to travel to a particular country which helps them obtain a lifetime experience when they visit a particular country as a tourist.

Risks and concerns

Maximum revenue comes from few global institutions of higher education: The company is one of the education platforms offering Indian student counselling to pursue education in global institutions for higher education majorly in Canada. While revenue from any particular institution of higher education may vary between financial reporting periods depending on the nature and term of on-going contracts, historically, it has been dependent on a limited set of global institutions of higher education for a majority of its revenue from operations. The company has garnered 62.22%, 50.45% and 47.38% of total revenue from top 10 global institutions of higher education. Its failure or inability to continue such relationship for any reason (including, due to failure to negotiate acceptable terms or adverse change in the financial or economic conditions) could have a material adverse impact on its business, results of operations, financial condition and cash flows.

Geographical constrain: For the period ended September 30, 2024 and for the Financial year ended March 31, 2024, 2023 and 2022 its revenue from the Institutions situated in Canada contributed 76.80%, 69.61%, 57.30% and 52.30% respectively of its total revenue as per the restated financial statements. Such geographical concentration of its business in this country heightens its exposure to adverse developments related to competition as well as economic and demographic changes in this country which may adversely affect its business prospects, financial conditions and results of operations. In addition, as the company plans to enter new geographical areas, it is likely to compete not only with national players, but also local players who might have an established local presence and are more familiar with local regulations, business practices and industry needs, have stronger relationships with local dealers, relevant government authorities or are in a stronger financial position than it, all of which may give them a competitive advantage over it. The company’s inability to expand into areas may adversely affect its business prospects, financial conditions and results of operations.

Business operations are seasonal in nature: The company operates in the global educational and immigration consultancy service industry and as a service, it assists in enrolling students to global institutions of higher education. Enrolment into global educational institution is seasonal in nature and typically, enrolments are undertaken during specified intakes. Key intakes which are currently relevant to it occur during the months of January/ February, April/ May and September/ October. As its revenue is generated majorly from its global educational consultancy services, its revenue during the enrolment season is significantly higher than the rest of the year. It has experienced and expect to continue to experience, significant variability in its total revenue from operations, operating cash flows, operating expenses and net revenues on a seasonal basis. 

Outlook

Landmark Immigration Consultants is engaged in the business of Global Consultancy Services. The company offers Global Education Consultancy for students seeking to study abroad and Immigration Consultancy for visas, tourism, business, and permanent residency, primarily in Canada. The company is One-Stop solution for visa consultancy services and it has dedicated team of counsellors. On the concern side, the company generates its major portion of sales from its operations from a particular geographical region, Canada. Any adverse developments affecting its operations in this country could have an adverse impact on its revenue and results of operations. Moreover, the company is heavily dependent on few global institutions of higher education for its revenue. Any loss of such global institutions of higher education may have an adverse impact on its business, results of operations and financial conditions.

The company is coming out with a maiden IPO of 56,00,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 70-72 per equity share. The aggregate size of the offer is around Rs 39.20 crore to Rs 40.32 crore based on lower and upper price band respectively. On performance front, revenue from operations for FY 2023-24 amounted to Rs 3,488.88 lakh while revenue for FY 2022-23 was Rs 1,958.28 lakh. Revenue from operations in FY 2023-24 grew by 78.16% as compared to FY 2022-23. The Profit after Tax in FY 2023-24 was Rs 1,111.83 lakh which is 29.99% of total Revenue. The same was Rs 443.48 lakh in FY 2022-23 which was 20.51% of total Revenue in FY 2022-23. Increase in topline growth of the company contributed to an increase in the PAT margins.

The company intends to enter new geographical markets and increase course offering which will increase its potential for future growth expansion. Its growth is to strengthen its role as a leading overseas education and immigration consultancy services. Its aim is to strengthen its position as an organised overseas education and immigration consultancy services and its brand recognition. It intends to expand its presence in the existing market, by increasing the number of its branches. The company plans to leverage its brand recognition and experience in the market to service the increasing demand of its immigration consultancy services. It can increase its student enrolment by entering new geographic market that offer significant growth potential. By strategically expanding both its geographic reach and service offerings. It is poised to achieve its growth targets and solidify its position as a major player in the immigration and overseas education industries.